Swing Trading Earnings Bullish Momentum With Options in Artisan Partners Asset Management Inc
Artisan Partners Asset Management Inc (NYSE:APAM) : Swing Trading Earnings Bullish Momentum With Options
There is a pattern of bullish momentum in Artisan Partners Asset Management Inc (NYSE:APAM) stock just days before earnings, and we can track that by looking at swing returns in the option market.
This is a short-term swing trade, it won’t be a winner forever, and it can be easily derailed by a couple of down days in the market irrespective of Artisan Partners Asset Management Inc news, but for now it has shown a repeating success that has not only returned 305% annualized returns, but has also shown a win-rate of 55%.
The idea is quite simple — trying to take advantage of a pattern in short-term bullishness just before earnings, and then getting out of the way so no actual earnings risk is taken.
That is, totally independent of whether the stocks have a pattern of beating earnings, in the 3-days before earnings, there is a small group that have risen sharply ahead of the actual news. It’s essentially bullish optimism in a very short-term window. There has been a way to use a short-term trade and generate profits from this tendency and it does not take earnings risk.
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The Short-term Option Swing Trade Ahead of Earnings in Artisan Partners Asset Management Inc
We will examine the outcome of going long a monthly call option in Artisan Partners Asset Management Inc just three-days before earnings and selling the call one day before the actual news.
This is construct of the trade, noting that the short-term trade closes before earnings and therefore does not take a position on the earnings result.
Often times we look at option set-ups that are longer-term, and…